Technical Field
Embodiments of the present disclosure generally relate to secure transactions, and more particularly, to methods and systems for secure financial transactions using one or more point of sale devices and passwords, PINs or passcodes for authentication.
Related Art
Financial transactions such as purchases made online or over the Internet are widely used and continue to grow in popularity. However, such financial transactions may introduce fraud and security concerns as a result of a seller not being able to physically identify a purchaser and verify that the purchaser is entitled to use a selected form of payment.
Financial transactions in general require some type of identity authentication to verify that a purchaser is authorized to conduct such a transaction. To address fraud and security concerns of financial transactions, “two-factor authentication” systems have been introduced in connection with online and Internet purchases as well as for in-person purchases at a point of sale (POS) location. Two-factor authentication systems require that a purchaser submit two unique forms of identification associated with the particular form of payment selected by the purchaser. For example, a purchaser may be required to present a primary account number (PAN) as well as a personal identification number (PIN).
One effective second authentication factor may include the use of a card, for example, a credit card, that can display a “One-Time PIN/Password” or “OTP”. An OTP is similar to a traditional static password in that it may be used along with a username or a PAN, however, an OTP is dynamically generated. At each session, a purchaser may use the card displaying a unique multi-digit PIN or password. In subsequent sessions, yet another unique PIN or password is generated. These PINS or passwords may be synchronized with a central server so that a purchaser is authenticated as an authorized purchaser.
An OTP may provide a higher level of security than a static password, PIN or other identifier. However, a need exists for improved methods and systems for financial transactions with increased security features.